BOJ Defends Yield-Curve Target With More Rounds of Bond Buying

BOJ offers to buy unlimited quantity of two- to five-year debt
Some yields rise even after BOJ announces extra purchases

WATCH+ Takatoshi Ito, a former official at Japan’s finance ministry, said last week the BOJ’s policy tweak could be the first step toward exit.Source: Bloomberg

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By Masaki Kondo and Marcus Wong

December 29, 2022 at 1:26 AM UTC

Updated on

December 29, 2022 at 7:16 AM UTC

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The Bank of Japan announced two additional rounds of unscheduled bond-purchase operations, fighting back against traders betting it will further relax its yield-curve control policy.

The central bank offered to buy unlimited amounts of two- and five-year notes at a fixed yield, along with 600 billion yen ($4.5 billion) of one-to-10 year bonds. That was on top of Wednesday’s unplanned operations and a daily offer to buy 10-year debt at 0.5%, the top of its current yield target.